If we elaborate on 21st-century living, it is impossible to mention our life without the existence of the internet and technology. It is almost the fourth necessity after the food, shelter, and clothing that makes us a decent breadwinner, "Cyberspace" deleterious drawbacks cannot be overlooked. To the fact, internet usage, precisely with the growth of e-commerce and technology, has diverse nature Disputes/Conflicts surfacing more frequently in recent times. This induces a plethora of online subject into a questionable state, naming few: B2B and B2C transactions, Domain Name, breach of e-commerce contract, cyber-crimes and terrorism, invasion of privacy, C2C disputes, and others. All from interpersonal to interstate conflicts where conventional offline laws have little or no say in it. Therefore, there has to be a practical and viable solution that resolves these disputes under jurisdiction. Hence, giving rise to ODR- Online Dispute Resolution.
With global business developments, virtual boundary-free territories of trading, or hi-tech platforms for business opportunities, it creates an interconnected complex world, especially for e-commerce platforms. This is where cultural, political, social, and commercial disputes or conflicts, involving two parties, are natural to occur. Of course, involving two parties of different jurisdiction under different territories are way off the reach for any individual party to the other’s side. Hence, to neutralize the situation for both the parties, the ODR act as the third component/party/panel in the entire dispute resolution process.
ODR utilizes network-based Information Communication Technology, hence called the "Fourth Party" by Katsh and Rifkin because of its independency input to the management of dispute. Organizing information, automated negotiations, blocking foul languages, writing more constructive messages are the most powerful, skilled, and intelligent assistance to the ODR.
With ODR being a new idea, it is fair to say that it is emanated from traditional approaches of dispute resolution, i.e. ADR – Alternative Dispute resolution. It principally involves Online Negotiation (Blind Bidding), Mediation (Online Communication tool), Online Arbitration (Cybitration involving a neutral third party), or a combination of all.
The procedure ODR filing necessitates the presence of two parties at the website of the ODR provider, one is claimant, who initiates to file the statement, and other is the respondent, who further seeks the answer to the online arbitration with specific relevant facts and available defense to the claim made by the respondent. The whole procedure necessitates the e-documents, electric signature to ensure the safety and authenticity of the documents and transaction details.
The Indian legal framework has its support for the ODR process. According to Section 7(3) of the Arbitration Act[1], the agreement must definitely be in writing format but if both the parties agree to the arbitration dispute resolution by the ODR service provider, the court of law will consider it valid. Also, Section 89 of the Code of Civil Procedure[2] promotes the dispute resolution between the parties and alternative ways for it. In Contrast, Section 5 of the Information Technology Act, 2000[3]permits the legal recognition of the use of electronic signatures and e-records.
Very clearly, if ODR is emboldened by the Law, it has to be propitious in unraveling the disputes and pertinent concerns prevailing in the online environment. There are wide spectrum spheres that ensure inhibiting ODR has greater access to justice, facilitating growth and commerce activity across the world.
One such arena is the Income Tax Return Assessment Scheme, which launched the "Faceless" and "jurisdiction-less" Income tax assessment (E-Assessment Scheme). This seeks to do away with officers from the IT Department and Income tax assesses, enabling issuance and filing of notices and responses through electronic means. Assessing officers are even randomly identified and assigned for each matter. Therefore, obvious that ODR not only eases the complaints of the taxpayers along with the improved quality of assessment through standardization, better monitoring but also encourages transparency by eliminating opportunities for corruption practices. This promotes the smooth functioning of businesses in the country. The tax assessment technique also called the “faceless” technique, promotes the Digital India campaign.
However, sometimes businesses too, indulge themselves in conflicts that can be contractual like B2B and B2C or Non-Contractual like Copyright dispute, defamation, and Domain Name dispute stands the most common. This occurs when some other individual/business who is not the trademark owner registers a domain name standing similar to the registered trademark. Therefore, with such instances before the NIXI/INRegistry, who is responsible for the registration of .in Internet domain name, ODR stands as the best methodology. This is because of the commitments it has like: appointing an arbitrator or panel who entertains technical and other details to decide upon the best on the disputed matter. Also, any party not showing-up ensures a non-confrontational dispute resolution process. With such ease of resolving online conflict, any respondent cannot propose its claimant to be tech-savvy and it is the reason for the claim.
ODR also helps in resolving cases between Businesses and Consumers, mostly e-commerce business-to-consumer disputes. Non-payment of goods and services, breach of the privacy policy misleading product information, defective products, or unsecured website and transaction stands as a definite reason for E-commerce disputes. Going for traditional methods of resolving, the legislature covers the consumer under the Consumer Protection Act, 1986 (CPA). However, the consumer is free to grab the quicker and easier method of ODR, where the arbitrator offers remedies under special legislation in the areas of e-commerce.
However, in a few cases of B2B disputes, CPA has no application in such a context. This happens between online giant Retailers and small vendors and suppliers. Hence, ODR act as the most powerful method in resolving. Since both the parties are familiar with the online environment, its technical tool, and online communication, ODR seek the best suit. Also, it aligns with the policy objective of protecting the interest of small traders and businesses with quick and cost-efficient dispute resolution while ensuring their rapid growth.
ODR not only propel to solve B2B and B2C disputes, but also provide an innovative online mediation tool for the consumer for their better access to Justice- OCMC- Online Consumer Mediation Centre. This resolves consumer disputes through physical as well as online mediation on its platform. The Consumer needs to register, file details of the retailer, and the platform allows the consumer to negotiate with the e-commerce representative against whom the complaint is filed. The mediator helps the attempt to help the parties arrive upon an agreeable solution to the dispute. On top, it also allows a short time-frame of around 30 days where OCMC aims to resolve the case. Furthermore, the Ministry of Consumer Affairs, who may also help to inhibit trust and confidence in the consumer’s mind, also supports it.
ODR is also useful for the Pre-Trial resolution, where individuals’ already pending cases in a court can get an immediate hearing. This covers money owed, contract dispute, neighborhood dispute, or landlord-tenant matters. This is suitable for all income backgrounds who can access the internet and save time and exhaustion of resolving cases through traditional methods. Sometimes Personal Disputes like a divorce, mortgage defaults, and family business dispute or inside relation dispute, which are built on the foundation of trust and empathy, play over a long period. Mostly it is not liked to be dragged to the hostile environment. Hence, disputants prefer an easy alternative .i.e. ODR to resolve such closely or personal disputes.
Other than being the best alternative for e-commerce businesses and consumers, it is also an efficient and time-effective solution for financial institutions, resolving disputes between banks and borrowers. Through ODR, some online platform handles and resolves disputes between businesses and customers, employer and employee, professionals and clients through the application of mediation, arbitration, and conciliation conducted by the professionals on the online platform. This saves time and money, agreeing both the parties toward a common solution.
To boost its position in the World Bank's Ease of Doing Business ranking, the State Business Reform Action Plan 2019[4]: Implementation Guides for State/UTs, included a section on "Paper-less Court”. This allows E-filing facility, e-cause list, e-summons, online payment of court fees and process fees, for all commercial courts. This will bring cost-efficiency, transparency, and improved justice for smaller businesses, ultimately upgrading its position in the World Bank’s Ease of Doing Business ranking.
Conclusion
The country only evolves when the public has access to life convenience tools. With the presence of the internet and smartphones in each hand, they must also be equipped with online technology. India with diverse cultures and contrasting minds is sure to have differences in opinions and perspectives sometimes creating clashes and disputes. Hence, solutions taking a drastic shift from offline to online not only ease and fasters the lives of people but also overcomes the shortcoming of being underprivileged. Through ODR, people can save time, money, and eliminate the exhaustion of traditional disputes of the redressal method. The online environment should create a better meaning of growing and developing and help individuals, businesses, and governments enjoy improved and faster justice because “Justice delayed is justice denied.”
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